Euromoney’s Q3 update indicates that year-to-date financial performance is in line with management expectations. As is usual, the full year outcome depends on September’s trading performance, which typically provides around 20% of annual profits. For 2016, September’s prospects are hard to call. While sterling weakness boosts reported results, uncertainty in client markets has been exacerbated by the Brexit vote and it is prudent to leave forecasts where they are for now. Cash conversion remains very strong and is a key attraction of the stock, with £83m of net cash on the balance sheet at 30 June. The share price is likely to mark time until the market picture becomes clearer.
